Libya’s Central Bank Plans Law to Allow Islamic Bond Sales: Arab Credit - Bloomberg

Libya’s central bank is preparing a law to allow lenders and issuers to sell Islamic bonds as part of its efforts to develop banking services after the fall of Muammar Qaddafi.

The regulator has formed a committee with the country’s banks to prepare the law, Ezzedin Ashur, deputy director of research and statistics at the Tripoli-based central bank, said in a telephone interview yesterday. Libya has 15 banks, all of which have Shariah-compliant “windows,” he said.

“Some banks have the desire to open standalone Islamic branches and we have local investors who want to set up Islamic banks,” he said. “If we have Islamic banking with all of its services, its market share will be big. Many people have issues dealing with conventional banks."

* username: rupertbu